We recently published a list of 10 Best Energy Dividend Stocks To Buy Right Now. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against other best energy dividend stocks to buy right now.
The energy sector’s presence within the broader US stock market has fluctuated over time. In the 1970s, it accounted for around 15% of the market, whereas today, it represents just 3.2% of the broader index, as reported by U.S. Bancorp Investments. However, energy consumption has increased since the 1970s, and its significance has not diminished. According to analysts, from an economic standpoint, energy stocks hold a more substantial role in the broader market than their current index weighting suggests.
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Towards the end of 2024, energy sector stocks saw considerable fluctuations, rising by over 6% in November before declining nearly 10% in December. By the close of the year, the broader market’s energy sector, which had been up nearly 20% at its highest point, finished 2024 with a return of just 5.72%. This performance fell well behind the wider market. Rob Haworth, senior investment strategy director with U.S. Bank Asset Management, made the following comment about the performance of energy stocks:
“As 2024 came to a close, markets responded to the environment for energy prices. In part, it reflects concern that Oil Petroleum Exporting Countries+ (OPEC+) may soon boost production, which would add to an already solid supply situation. The oil market is one that remains well supplied but isn’t well demanded. Although the U.S. economy is strong, other major oil users like China and Europe are experiencing economic challenges. As a result, global oil demand is lagging.”
Although energy stocks fell short of investor expectations, global investment in the low-carbon energy transition grew by 11% in 2024, reaching a record $2.1 trillion, according to BloombergNEF’s (BNEF) Energy Transition Investment Trends 2025 report. This growth was largely driven by increased investment in electrified transportation, renewable energy, power grids, and energy storage, all of which hit new highs last year. However, while total investment in energy transition technologies set a new record, its growth rate was slower than in the previous three years, when annual increases ranged from 24% to 29%.
BNEF’s report also highlighted a clear divide between investment in well-established and emerging clean energy sectors. Proven technologies with scalable business models—such as renewables, energy storage, electric vehicles, and power grids—accounted for the bulk of 2024’s investment, totaling $1.93 trillion, a 14.7% increase. This growth persisted despite challenges from policy changes, higher interest rates, and an expected slowdown in consumer demand.
Even as oil prices decline, an increasing number of fossil fuel companies are allocating a larger share of their profits to shareholders, indicating a shift in focus away from reinvesting in oilfield development. Some major oil firms have even taken on debt to maintain shareholder payouts. According to Bloomberg, four of the world’s five oil supermajors borrowed a combined $15 billion between July and September 2024 to fund share buybacks, underscoring their commitment to rewarding investors. In addition, companies in the energy sector distributed over $49 billion in dividends during the third quarter of 2024, up from $32.2 billion three years ago, as reported by Janus Henderson.
Our Methodology
For this list, we first scanned Insider Monkey’s database of 900 hedge funds, as of the third quarter of 2024. Our focus was on selecting energy companies across various sectors within the energy industry, including exploration and production, utilities, renewable energy, and oil refining and marketing. From this pool of companies, we identified 10 companies that prioritize distributing dividends to their shareholders and ranked them in ascending order of the number of hedge funds having stakes in them at the end of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
An aerial view of an oil rig at sea, the sun glinting off its structure.
Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 63
Chevron Corporation (NYSE:CVX) ranks sixth on our list of the best dividend stocks from the energy sector. The American multinational energy company manufactures and sells a range of high-quality refined products. It recently announced a partnership focused on creating scalable power solutions using natural gas-fired turbines, incorporating carbon capture and storage to support the growing energy demands of US data centers. In addition, the company successfully launched gas production from the Sanha Lean Gas Connection project, securing a reliable natural gas supply for the Angola Liquefied Natural Gas facility. CVX has surged by over 4% since the start of 2025.
In 2024, Chevron Corporation (NYSE:CVX) delivered an exceptional performance, setting new records. Global production rose by 7%, while US output saw a remarkable 19% increase, reaching all-time highs. Looking ahead to 2025, growth is expected to continue, supported by the full-year impact of its PDC Energy acquisition, finalized in August 2023. In addition, key project launches in the Gulf of Mexico and continued expansion in the Permian Basin—where production grew by 18%—further strengthened its overall performance.
Chevron Corporation (NYSE:CVX) maintained a strong cash position in FY24. The company generated an operating cash flow of $31.5 billion and a free cash flow of $15 billion. It returned almost $12 billion to shareholders in the form of dividends. Moreover, the company repurchased over $15 billion of its own shares in 2024, continuing its long-standing practice of share buybacks, which it has done in 17 of the past 21 years. It currently pays a quarterly dividend of $1.71 per share, having raised it by 4.9% in January. This marked the company’s 38th consecutive year of dividend growth. The stock supports a dividend yield of 4.48%, as of February 8.
Chevron Corporation (NYSE:CVX) was included in 63 hedge fund portfolios at the end of Q3 2024, compared with 64 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds are worth more than $21 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.
Overall, CVX ranks 6th on our list of best energy dividend stocks to buy right now. While we acknowledge the potential for CVX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
